Big Platforms Struggle with Compliance to the Digital Market Act

Big Platforms Face Challenges in Complying with the Digital Market Act

The leading digital platforms still have significant strides to make in order to fully comply with the European Union’s flagship regulation on digital markets, known as the Digital Market Act (DMA). This assessment comes from a report released by the European consumer association, BEUC. While the organization acknowledges that these platforms have initiated some necessary steps towards meeting the new regulatory requirements, BEUC urges the European Commission to investigate several lingering barriers that hinder the opening of platform ecosystems to consumers.

“Interoperability is key to open the market,” stated Sebastien Plant, BEUC’s competition policy officer, in an interview with Euronews. He elaborated that although there have been improvements from major platforms, they have not yet achieved full compliance. “The DMA is essential to provide consumers with more and better choices,” he added.

Effective from 2023, the DMA imposes obligations on designated “gatekeeper” platforms, which have been identified due to their substantial size and dominance in the digital landscape. These obligations include the requirement for these platforms to enable interoperability with other businesses.

In its report, BEUC evaluated Meta’s adherence to the DMA, particularly focusing on the interoperability of WhatsApp and Messenger with third-party instant messaging services. The organization suggested that Meta should conduct live user testing to determine if consumers can genuinely make informed choices regarding interoperability.

Regarding Apple, the report noted that users have the ability to change their default browsers and applications and can uninstall apps with greater ease on their devices. However, BEUC recommended that Apple implement a one-step, one-click process that allows consumers to set a third-party app as their default application. Additionally, the user journey for uninstalling Apple apps should be made clearer, and users should be presented with a browser choice screen immediately following an iOS update.

As part of the DMA’s stipulation that platforms cannot favor their own services or products over those of competitors, BEUC has called on Google to diversify its search results pages to provide other vertical search services with a fair opportunity to compete.

In June, the EU enforcement agency found that Apple’s App Store was obstructing app developers from directing consumers to alternative content channels.
A week later, Meta faced scrutiny for its controversial “pay or consent” policy, which forces Facebook and Instagram users to either pay a fee or relinquish their data to continue using the services. The Commission has sent preliminary findings to Meta and is expected to conclude its investigation by March 2025.
The Commission has also initiated an investigation into Google due to concerns regarding its preferential treatment of its vertical search services over those of rivals.

Platforms that fail to comply with the DMA could face hefty penalties, with fines reaching up to 10% of the company’s total global revenue.